<p>New Delhi: Rating agency Morningstar DBRS on Friday upgraded India’s sovereign credit rating to BBB with a stable trend from BBB (low) citing structural reforms, fiscal consolidation and macroeconomic stability.</p><p>India’s long-term foreign and local currency – issuer ratings have been upgraded from BBB (low) to BBB.</p><p>The rating scale for Morningstar DBRS is similar to the Fitch and S&P rating scales (Morningstar DBRS uses 'high' and 'low' as suffixes compared to the +/- nomenclature used by Fitch and S&P). Higher ratings help in reducing the country’s external borrowing costs.</p><p>Interestingly, the rating upgrade by Toronto-headquartered Morningstar DBRS comes a day after S&P warned of heightened regional credit risks amid the escalation of the India-Pakistan conflict.</p><p>Morningstar DBRS has also upgraded India’s short-term foreign and local currency issuer ratings R-2 (high) from R-2 (middle) with a stable trend.</p><p>The credit rating may be further upgraded if India continues to implement reforms that raise the investment rate, enhancing medium-term growth prospects. The report also stated that despite the current public debt levels, risks to debt sustainability are limited due to local currency denomination and long maturity structures. Further, continued reforms and a reduction in the public debt-to-GDP ratio could bring further upgrades.</p>.Parliamentary panel seeks info on digital markets competition from CCI, MCA.<p>Key drivers for the upgrade include India’s structural reforms through infrastructure investments, digitalisation etc., all of which facilitated fiscal consolidation (declining debt and deficit) and sustained high growth (clocking an average GDP growth of 8.2 per cent during FY22-25) with macroeconomic stability (stabilised inflation, range bound exchange rate and sound external balance), according to a statement issued by the Union Finance Ministry.</p><p>A resilient banking system featuring well-capitalised banks with a high capital adequacy ratio and a 13-year low non-performing loans was another significant driver for the upgrade, it said.</p>
<p>New Delhi: Rating agency Morningstar DBRS on Friday upgraded India’s sovereign credit rating to BBB with a stable trend from BBB (low) citing structural reforms, fiscal consolidation and macroeconomic stability.</p><p>India’s long-term foreign and local currency – issuer ratings have been upgraded from BBB (low) to BBB.</p><p>The rating scale for Morningstar DBRS is similar to the Fitch and S&P rating scales (Morningstar DBRS uses 'high' and 'low' as suffixes compared to the +/- nomenclature used by Fitch and S&P). Higher ratings help in reducing the country’s external borrowing costs.</p><p>Interestingly, the rating upgrade by Toronto-headquartered Morningstar DBRS comes a day after S&P warned of heightened regional credit risks amid the escalation of the India-Pakistan conflict.</p><p>Morningstar DBRS has also upgraded India’s short-term foreign and local currency issuer ratings R-2 (high) from R-2 (middle) with a stable trend.</p><p>The credit rating may be further upgraded if India continues to implement reforms that raise the investment rate, enhancing medium-term growth prospects. The report also stated that despite the current public debt levels, risks to debt sustainability are limited due to local currency denomination and long maturity structures. Further, continued reforms and a reduction in the public debt-to-GDP ratio could bring further upgrades.</p>.Parliamentary panel seeks info on digital markets competition from CCI, MCA.<p>Key drivers for the upgrade include India’s structural reforms through infrastructure investments, digitalisation etc., all of which facilitated fiscal consolidation (declining debt and deficit) and sustained high growth (clocking an average GDP growth of 8.2 per cent during FY22-25) with macroeconomic stability (stabilised inflation, range bound exchange rate and sound external balance), according to a statement issued by the Union Finance Ministry.</p><p>A resilient banking system featuring well-capitalised banks with a high capital adequacy ratio and a 13-year low non-performing loans was another significant driver for the upgrade, it said.</p>